A brand of iced tea called Gold Peak has high marketing costs as well as high production costs. Promotions for the product are aimed at gaining distribution and informing consumers that this premium product tastes like its home brewed. In which stage of the product life cycle is Gold Peak iced tea?

Introductory

Explanation:

The life cycle of a product goes through 5 different stages:

Development: This is the first stage and refers to the moment where costs are accumulating and there is no revenue, it is the moment where products test their effectiveness and they are still in process before making them available for the public. Introduction: in this stage the company develops a market for the product and tries to make people aware of their new product; thus marketing costs are high. Basically, it has to do with reaching out to potential customers. Growth: In this stage, the product has been accepted by customers and there is a good income coming in. Maturity: Sales level off, the competition grows so the product needs to be enhanced so it can maintain its clients. Decline: There is a decreasing revenue because of competition. The product can be discontinued or can be improved to maintain their clients by adding new features. This is the "new and improved" phase.

In the example, marketing costs are high and promotions are aimed at gaining distribution among customers and informing them that this product tastes like it's home brewed. This company is trying to reach out to potential customers by telling them what the product is like.

Thus, we can say that Gold Peak iced tea is in the introduction stage.